Insurance billing software

Insurance is defined as “Protection against future loss”. Insurance companies offer different policies which cover different losses to their customer in order to protect themselves from huge losses. There are different transactions associated with a policy like premium payment, claim settlement, policy renewal etc.  All these transactions have to be handled within the Insurance Company without any errors. Modern Insurance companies employ Insurance billing software to handle and keep track of their transactions.

All major Insurance providers categorize their operations into three major sections namely Claims Centre, Policy Centre and Billing Centre. All these three sections are intertwined and together to form the Insurance firm .Claims Centre captures and handles data in connection to claims made on all the policies offered by the insurance firm. Policy Centre handles all information in connection to all the policies offered by the firm including premium amount, insurance period, coverages etc. Billing Centre employs Insurance billing software to handle all the financial transactions involved right from issue of policy, premium calculation and collection, premium deadlines claim settlements and policy renewal.

Insurance companies calculate their premium based on complex statistical principles, the simple formula is that the premium is high when the risk associated with the policy issued is high and therefore there is a higher probability of claims to be made on the policy. For example in case of health insurance the premium amount paid by a 21 year old is going to be much lower than premium paid by a 40 year old. Mathematical formulas are coded in the Insurance billing software to calculate this premium, and information regarding deadline is also stored in the software. When a policy is issued by the insurance company, a certain percentage of the value of the policy is set aside as reserve for the policy. This reserve is used to settle claims made on the policy. The Insurance billing software automatically calculates this reserve amount based on the policy issued and keeps in track of claims settled through claim centre against the policy.

As claims continue to be made and settled against a policy the reserve amount diminishes, once the entire reserve is consumed, the billing centre raises a flag. The amount paid in excess of the reserve allocated is either claimed from a third party or compensated partly by adding to the next premium to be paid by the policy holder.  The software also keeps in track of the policy period, once the policy period is over the billing software ensures that no more transactions are made on the policy before it is ensured.

Insurance firms use the latest computer and software technology in the world to ensure smooth functioning. Insurance Billing Software takes care of all the financials of the insurance firm and keeps them error free.